Welcome to 2019, where the leader in clothing sales is Amazon. To compete in the new world of retail, apparel companies adjust to Amazon this year in a big way. It takes guts to shut hundreds of storefronts and change in ways you never envisioned. Discover how and why brands are making changes to involve the marketplace giant.
Back in early 2018, TechCrunch claimed that Amazon would overtake the apparel industry. Turns out, they were spot on. According to Reuters, Amazon surpassed WalMart as the destination for apparel in the U.S. So, what does this mean for our favorite brands that we’re used to visiting the mall for?
To name a few, Chico’s, Under Armour Inc., and J. Crew is embracing Amazon as a vital part of their distribution strategy. Changes in consumer behavior have had a strong hand in this. But, now to reach new and existing customers, you have to be on Amazon.
There are a few different ways traditional retailers use Amazon as a distribution channel. Some have opted to digitize their outlet stores and sell their brands at a lower ticket price. Others have begun a wholesale relationship with Amazon or have become third-party (3P) sellers.
Marketplace Strategy’s CEO Drew Kraemer shares his take on the benefit of apparel retailers embracing Amazon and why they’re finding it essential.
“Apparel brands (most brands) are beginning to view Amazon as a marketing platform rather than only an e-commerce site. Customers use Amazon as the product search engine and brands can’t afford to not be seen in the results. Also, apparel brands have competitors only on Amazon. So, it’s impossible to ignore as part of their strategy. There is no better time than now to scale a brand on Amazon. A full-funnel, customized approach will lead your brand to success on Amazon and subsequently in brick and mortar locations.”
However retailers decide to use Amazon as a tool to reach their customers it’s a necessity. Competition is no longer the boutique down the street, an up-and-coming online retailer, but Amazon itself. It’s hard to overlook the more than $30 billion in apparel sales that Amazon raked in during 2018. That statistic alone has retailers lining up to become a part of the largest apparel marketplace in the United States.
If you shop for clothing online, you’ve likely used Amazon to browse, compare prices, and buy your next wardrobe piece. If you haven’t yet, we’re confident that you will.
Apparel, accessory, and other traditional retail brands are teaming up with partners who can help them conquer their Amazon efforts. Learn how Baggalini achieved success with our team and schedule your own free consultation.